STRATEGIC INCOTERMS : A CATALYST FOR CUSTOMER RETENTION

The world of trade is getting more complicated and uncertain. This has changed the role of Incoterms from being about delivery terms to being important tools in logistics and supply chain management. This study looks at how Incoterms 2020 used in the export and import industry. It focuses on how they affect the efficiency of operations, transparency of costs, allocation of risks and customer retention in freight forwarding. The Indian logistics environment is complex with laws like the Customs Act and Goods and Services Tax. This makes it necessary for companies to make decisions about trade terms. This study uses a research design and case studies to evaluate realworld shipment scenarios. It highlights problems that happen when Incoterms are not chosen correctly. For example, using EXW can lead to a lack of control over documents. Using CIF can lead to costs. Not having insurance coverage for high-value air shipments can be a problem. Losing input credit for GST under DDP transactions can also be an issue. The study shows that using terms like FCA, CIP and DAP can help companies control logistics processes better. It can also make costs more transparent. Reduce financial and operational risks. By combining expertise with digital tools and regulatory awareness logistics providers can make Incoterms more valuable to their customers. This can help build trust and retain customers. The study concludes that using Incoterms strategically is key to achieving excellence, financial efficiency and a competitive advantage in the global logistics landscape.